Share-Based Payments

6 Months Ended

Jun. 30, 2016

Note 8: Share-Based Payments

We currently grant share-based awards to our executives, non-employee directors and employees under our 2011 Incentive Plan (the “Plan”). The Plan permits the granting of stock options, restricted stock, restricted stock units, and performance-based restricted stock.

Certain information regarding our share-based payments is as follows:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
Dollars in thousands	2016		2015		2016		2015
Share-based payments expense:
Share-based compensation - stock options	$	33	$	40	$	80	$	181
Share-based compensation - restricted stock	4,452		2,039		7,982		4,598
Share-based payments for content arrangements	813		1,241		1,628		2,482
Total share-based payments expense	$	5,298	$	3,320	$	9,690	$	7,261
Tax benefit on share-based payments expense	$	2,066	$	1,289	$	3,774	$	2,807



	June 30, 2016
Dollars in thousands	Unrecognized Share-Based Payments Expense		Weighted-Average Remaining Life
Unrecognized share-based payments expense:
Share-based compensation - stock options	$	83	0.7 years
Share-based compensation - restricted stock	18,349		2.4 years
Share-based payments for content arrangements	1,264		0.4 years
Total unrecognized share-based payments expense	$	19,696

Share-Based Compensation

Stock options

No stock options were granted in 2016.

Restricted stock and performance based restricted stock awards

Restricted stock awards are granted to eligible executives, non-employee directors and employees. Awards granted to employees and executives in 2016 vest annually in installments over three years (25% of the award vests one year from the grant date, 25% of the award vests two years from the grant date, and the remaining 50% of the award vests three years from the grant date). Non-employee director awards vest one year after the grant date. The fair value of non-performance-based awards is based on the market price on the grant date.

Performance-based restricted stock awards are granted to executives only, with established performance criteria approved by the Compensation Committee of the Board of Directors. Awards of performance-based restricted stock made in 2016, once earned, vest annually in equal installments over three years from the date of grant. The restricted shares require no payment from the grantee. The fair value of performance-based awards is based on achieving specific performance conditions and is recognized over the vesting period.

We estimate forfeitures for restricted stock awards and recognize share-based compensation expense for only those awards expected to vest.

The following table presents a summary of restricted stock award activity for 2016:



Shares in thousands	Restricted Stock Awards		Weighted Average Grant Date Fair Value
Non-vested, December 31, 2015	556		$	65.86
Granted	746		26.86
Vested	(155	)	64.45
Forfeited	(148	)	50.73
Non-vested, June 30, 2016	999		39.21

Share-Based Payments for Content Arrangements

We have granted restricted stock as part of content license agreements with certain movie studios. The expense related to these agreements is included within direct operating expenses in our Consolidated Statements of Comprehensive Income and is adjusted based on the number of unvested shares and market price of our common stock each reporting period. During the first quarter of 2016, 50,000 shares of restricted stock were granted and immediately vested pursuant to a revenue sharing agreement with Paramount.

Rights to Receive Cash

As a part of the acquisition of ecoATM, we issued replacement awards for unvested restricted stock and options in ecoATM with rights to receive cash equal to the per share merger consideration for restricted stock and net of the exercise price for options. The replacement awards vest in accordance with the terms of the original replaced award. The replacement awards are considered liability classified as they represent rights to receive cash. Expense associated with the post-combination awards is recognized net of forfeitures, and cash payments are made in accordance with the awards' vesting schedule, generally on a monthly basis. We recognized $0.8 million in expense associated with the issuance of rights to receive cash for the six months ended June 30, 2016. The expected future recognition of expense associated with the rights to receive cash as of June 30, 2016 is as follows:



Dollars in thousands	Expected Expense
Remainder of 2016	$	594
2017	146
Remaining total expected expense	$	740

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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